[Congressional Record Volume 164, Number 39 (Tuesday, March 6, 2018)]
[Senate]
[Pages S1400-S1401]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
TAX REFORM
Mr. PORTMAN. Mr. President, on another economic issue, I want to talk
for a minute about the good news coming out of my State of Ohio with
regard to the tax reform legislation. In just the past few weeks, I
have visited eight separate businesses across the State talking about
this issue, asking them what has been the impact of the tax reform
bill, what are they doing with their savings.
There are three of these I want to talk about tonight, briefly. One
is a small auto parts manufacturing business in Zanesville, OH. They
have three auto parts stores. One is a multinational credit card
processing company headquartered in Cincinnati, OH, and one is a
premier medical center in Cleveland, OH. They are very different
businesses in different sectors of our economy, but all are benefiting
from the tax legislation.
GKM is the small auto parts store in Zanesville. They are reinstating
healthcare benefits to their employees directly as a result of this tax
reform bill. Under the Affordable Care Act, the company's healthcare
costs increased dramatically--like so many other businesses--by double
digits every year. They had a 22-percent increase in their costs in
2016, and the company went to its employees and said: We simply cannot
afford to pay for this 22-percent increase on top of other double-digit
increases. We don't know what to do. We are going to have to have you
go out on your own and find healthcare, including in the exchanges.
Now, with the money GKM Auto Parts is saving as the result of this
tax reform, all of their full-time employees are once again able to get
healthcare through the company, and they are very grateful, having
talked to some of the employees who had to go out to the exchanges,
while others chose to pay the penalty. They are really happy to have
their healthcare back.
These kinds of real, tangible benefits are exactly what we intended
to accomplish in developing tax reform, but businesses small and large
are benefiting from these pro-growth changes to the Tax Code.
The second company I want to talk about is a big C corporation--
Worldpay, Inc. It is the largest credit card processing company in the
world now by volume. It has about 2,000 employees in Ohio at their
headquarters. I recently went to their headquarters to talk about what
they were doing, and when I was there, they announced cash bonuses of
$1,000 and up to $2,000 for all of their hourly employees, higher wages
for their frontline positions, an increased 401(k) match, greater
company investment in employee wellness and recognition programs, and
significantly more charitable giving. As Worldpay's executive chair
said, tax reform is ``ensuring Ohio companies like Worldpay can remain
competitive and recruit the region's top talent.''
They merged recently with a foreign company. Thank goodness they
stayed in Ohio, but now they are rewarded for that because, although
they were punished for being a U.S. company before, now with our Tax
Code changes in place, they are actually benefiting from being an
American company, where it is more beneficial to make the investment
here rather than, in their case, in the United Kingdom.
A more competitive business tax code, an international tax code that
encourages investments in this country rather than overseas, and
incentives like immediate expensing that is in the Tax Code now are
helping to create jobs in my home State of Ohio. It is helping Worldpay
continue to be an American company and to be strong. It also is helping
foreign direct investment in my home State because companies that are
not American companies but foreign companies invested in Ohio are more
likely to increase that investment rather than an investment somewhere
else in the world because of the tax reform legislation. Immediate
expensing and lower tax rates, this all helps to create good American
jobs.
The most recent Federal jobs report shows strong job gains and the
fastest wage growth since 2009. According to a recent National
Federation of Independent Business survey, the NFIB, which represents a
lot of small businesses in Ohio, 32 percent of their companies now say
they are going to expand. By the way, that is the highest level in the
survey's history, and it is the highest level of optimism also in their
survey about the future among these small businesses. A lot of that is
from the increased opportunity and the optimism that comes from this
tax reform legislation.
One website I saw here in Washington tells us that across the country
more than 400 businesses have now announced bonuses, higher wages,
increased benefits, or a combination of these things as the result of
the tax reform law. Four hundred is impressive, but I have to tell you
it is a lot more businesses than that. I have been to small business
roundtable discussions and individual businesses over the past several
weeks in Ohio and talked to over two dozen individual companies--none
of whom are on the list of 400 because they are not big companies that
made a big public announcement--but every single one of them are taking
this tax reform and the benefits they are getting from that, and they
are reinvesting it into their people, their
[[Page S1401]]
workers, their company's plant, equipment, technology, making their
workers more productive. So 400 is impressive, but I know it is much
larger than that. Thousands of businesses are taking advantage of this
and therefore their employers are and therefore you are seeing this
increased optimism.
The final example I want to talk about is one that has to do with our
communities. I recently visited the University Hospital Rainbow Center
for Women and Children in Cleveland, OH--a really impressive new
facility they are building. This is a new $26 million medical facility,
and I learned during this visit that it was the new markets tax credit
that was key to making this project possible. New markets is a tax
incentive to spur economic growth and community redevelopment projects,
and it helps to spur private investment, as it did in this case. In
this Cleveland case, it spawned significant private investment from
foundations and from individuals. This is something that has worked in
the cities I represent in Ohio. We fought to preserve the new markets
tax credit in the Senate version of the tax legislation, and the final
agreement that became law has the new markets tax credit made
permanent. That is critical for economic development opportunities like
this new university hospital medical center I talked about.
So these benefits from tax reform are not abstract. They are very
real. They are extra money in your paycheck, they are more affordable
healthcare coverage, they are increased investments in emerging
communities, and much more.
As the good news continues to roll in from tax reform, I will keep
traveling Ohio, meeting with businesses, families, and workers to
discuss ways tax reform can help them achieve a better economic future.
A brighter future is really what our tax reform and tax cut legislation
was all about.
____________________